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The strong economic ties between the GCC economies and the U.S. are manifested in three ways: currency peg, coupling of monetary policy, and the adoption of the U.S. dollar as the trading currency for oil. This paper examines how these dynamics result in a misalignment of the U.S. monetary...
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price appreciation and explosive debt. This is in stark contrast with the productivity-fueled growth that was seen in the …
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total factor productivity (TFP) is endogenous and depends on the resource allocation. The model uncovers a novel tradeoff …
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